Bitcoin dipped slightly in Asian trading on Tuesday, lagging behind gains in equity markets as caution over the upcoming US inflation reading and escalating global geopolitical tensions kept traders away from speculative assets.
The world's largest cryptocurrency fell 0.2% to $91,894.6 by 8:33 AM Saudi time.
Bitcoin struggled to make progress during late 2025 and early 2026, as sentiment toward cryptocurrency markets declined significantly. The growing focus on artificial intelligence and technology stocks also drew capital away from the sector.
Awaiting consumer price index data for further interest rate signals; concerns persist regarding the Federal Reserve.
On Tuesday, attention was focused entirely on the highly anticipated US Consumer Price Index data for December.
The reading is expected to show the headline Consumer Price Index remaining steady at 2.7% year-on-year, while the core Consumer Price Index is expected to rise slightly.
Any signs of continued inflation could give the Federal Reserve less incentive to cut interest rates in the coming months.
The Federal Reserve was also a major point of uncertainty for the markets, after Chairman Jerome Powell revealed earlier in the week that he had received threats of legal action from the Justice Department.
Powell said that although the threats were officially linked to an ongoing renovation of the Federal Reserve headquarters, he believed they were intended to pressure the central bank to comply with Washington's demands to lower interest rates.
Powell's statement has raised concerns about the Federal Reserve's independence, especially as President Donald Trump prepares to announce his nominee to succeed Powell. Trump has criticized the Fed for lowering interest rates and has publicly expressed his anger at Powell for not heeding his demands.
Cryptocurrency prices today: Altcoins fluctuate as sentiment is affected by geopolitical tensions
Prices of broader cryptocurrencies have declined in line with Bitcoin, as appetite for speculative assets has also been affected by escalating geopolitical tensions around the world.
Increased public unrest in Iran, coupled with fears of US intervention in the country, has roiled markets and driven up oil prices. In Asia, the diplomatic row between China and Japan has shown few signs of abating.
This kept markets largely tied to safe havens like gold. Technology stocks also attracted bids due to continued optimism about artificial intelligence.
Artificial intelligence has been a key factor in curbing cryptocurrencies' tendency to track technology stocks, with the sector significantly outperforming Bitcoin in terms of returns in 2025.
Among other cryptocurrencies, Ethereum, the world's second-largest cryptocurrency, fell 0.7% to $3,136.69. XRP also declined by 0.7%, while BNB rose by 0.2%.
Solana fell by 2.1%, while Cardano declined by 1.4%. Among meme coins, Dogecoin dropped by 1.3%, and $TRUMP fell by 1.5%.
